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Question Mat CDA that and sells a number of parts, including Part XYZ. Data concoming Pu XYZ appear below Capacity in t $5,000 Selling price

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Question Mat CDA that and sells a number of parts, including Part XYZ. Data concoming Pu XYZ appear below Capacity in t $5,000 Selling price to ostidest Variable cost per unit 1.95 5.55 Fixed cost per unit (based on capacity) 5:30 The company has Divi B that could use Pan XYZ in one of its products Division B is canenty purchasing 20,000 of Part XYZ per year from an overseas supplier at a cost of 593 per part Required: A that Di As selling all of Part XYZ a can produce to outside customers. What is the acceptable range, if any, fe the transfer price between the two divisions? (4 marks) & Asume again that Division A is selling all of Part XYZ it can produce so outside customers. Also assume that 54 in variable expenses can be avoided on transfers within the company due to reduced shipping and selling costs What is the acceptable rangs, if any, for the transfer price between the two divisions? (4 marks] Based on requirement ( assume Division A offers to sell 20,000 units to Division B for $115 and that Division B refuses this price. What will be the loss in potential profits for Division A? [2 marks] For the toolbar, press ALT-FID (PC) or ALT-EN-F10 (Mad M E I. *** O hl

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